Fundamentals of Human Resource Management, 2E (Dessler)

Fundamentals of Human Resource Management, 2e (Dessler) Chapter 1 Managing Human Resources Today

1) The basic functions of management include all of the following EXCEPT ______. A) staffing B) planning C) organizing D) outsourcing Answer: D Explanation: D) The five basic functions of the management process include planning, organizing, staffing, leading, and controlling. Outsourcing jobs may be an aspect of human resources, but it is not one of the primary management functions. Diff: 1 Page Ref: 2 Chapter: 1 LO: 1 Skill: Concept

2) How is L.L. Bean most likely able to attract high-quality employees? A) requiring annual performance reviews B) providing training through simulators C) offering a supportive environment D) offshoring most clerical jobs Answer: C Explanation: C) L.L. Bean offers a supportive, outdoors-oriented working environment, competitive pay, and a full range of benefits. Instead of offshoring jobs abroad, the company keeps its jobs close to the town where Leon Leonwood Bean started his company almost 100 years ago. Most firms require performance reviews, but it is the supportive working environment that allows the firm to attract an excellent staff. Diff: 2 Page Ref: 2 Chapter: 1 LO: 2 Skill: Application

3) A manager is best described as a person who is responsible for ______. A) teaching new employees basic skills B) accomplishing the organization's goals C) communicating with stockholders D) delegating authority to subordinates Answer: B Explanation: B) A manager is someone who is responsible for accomplishing the organization's goals, and who does so by managing the efforts of the organization's people. Most writers agree that managing involves performing five basic functions: planning, organizing, staffing, leading, and controlling. Diff: 2 Page Ref: 2 Chapter: 1 LO: 1 Skill: Concept

1 4) Which individual in an organization is responsible for accomplishing the organization's goals by planning, organizing, staffing, leading, and controlling personnel? A) manager B) generalist C) marketer D) entrepreneur Answer: A Explanation: A) The manager is the person responsible for accomplishing an organization's goals by planning, organizing, staffing, leading, and controlling the efforts of the organization's people. An entrepreneur may manage people or may hire a manager to do so instead, but entrepreneurs are defined as individuals who start their own businesses. Diff: 2 Page Ref: 2 Chapter: 1 LO: 1 Skill: Application

5) Which of the following involves the five functions of planning, organizing, staffing, leading, and controlling? A) strategic management B) adaptability screening C) succession planning D) management process Answer: D Explanation: D) The management process includes five basic functionsplanning, organizing, staffing, leading, and controlling. Strategic management refers to the process of identifying and executing the organization's mission by matching its capabilities with the demands of its environment. Diff: 2 Page Ref: 2 Chapter: 1 LO: 1 Skill: Concept

6) Which basic function of management includes developing rules and procedures? A) planning B) organizing C) leading D) staffing Answer: A Explanation: A) Planning, organizing, staffing, leading, and controlling are the five functions of management. The planning function involves establishing goals and standards; developing rules and procedures; and developing plans and forecasts. Diff: 1 Page Ref: 2 Chapter: 1 LO: 1 Skill: Concept

2 7) Which basic function of management involves maintaining employee morale and motivating subordinates? A) planning B) leading C) organizing D) developing Answer: B Explanation: B) Planning, organizing, staffing, leading, and controlling are the five functions of management. The leading function involves getting others to accomplish a task, maintaining morale, and motivating subordinates. Diff: 1 Page Ref: 2 Chapter: 1 LO: 1 Skill: Concept

8) What specific activities listed below are part of the planning function? A) giving each subordinate a specific task B) training and developing employees C) developing rules and procedures D) establishing quality standards Answer: C Explanation: C) The planning function of management involves establishing goals and standards; developing rules and procedures; and developing plans and forecasts. The other functions of management are organizing, staffing, leading, and controlling. Diff: 2 Page Ref: 2 Chapter: 1 LO: 1 Skill: Concept

9) Celeste spends most of her time at work establishing goals for her staff of fifty employees and developing procedures for various tasks. In which function of the management process does Celeste spend most of her time? A) planning B) organizing C) motivating D) staffing Answer: A Explanation: A) The planning function of the management process requires managers to establish goals and standards, develop rules and procedures, and develop plans and forecast. Leading involves motivating staff, while controlling requires a manager to set standards, such as sales quotas. Assigning tasks to employees is an aspect of the organizing function. Diff: 2 Page Ref: 2 Chapter: 1 LO: 1 Skill: Application

3 10) John primarily spends his time giving tasks to subordinates and establishing departments. He is performing what function of management? A) leading B) planning C) organizing D) controlling Answer: C Explanation: C) The organizing function of management involves giving each subordinate a specific task; establishing departments; delegating authority to subordinates; establishing channels of authority and communication; and coordinating the work of subordinates. Leading, planning, and controlling are other activities in the management process. Diff: 2 Page Ref: 2 Chapter: 1 LO: 1 Skill: Application

11) Which function of the management process includes delegating authority to subordinates and establishing channels of communication? A) organizing B) motivating C) leading D) staffing Answer: A Explanation: A) The organizing function of the management process includes delegating authority to subordinates and establishing channels of communication. The organizing function also includes establishing departments and coordinating the work of subordinates. Diff: 1 Page Ref: 2 Chapter: 1 LO: 1 Skill: Concept

12) Zachary, a sales manager with a commercial real estate firm, uses sales quotas to assess the performance of his staff members, and he then develops strategies for corrective action. Which function of the management process is Zachary most likely performing? A) planning B) staffing C) controlling D) organizing Answer: C Explanation: C) Setting standards such as sales quotas, quality standards, or production levels are activities involved in the control function of the management process. Checking to see how actual performance compares with these standards and taking corrective action as needed are additional control functions. Diff: 2 Page Ref: 2 Chapter: 1 LO: 1 Skill: Application

4 13) Which of the following activities is related to the organizing function of the management process? A) giving each subordinate a specific task B) recruiting prospective employees C) developing rules and procedures D) establishing quality standards Answer: A Explanation: A) Giving subordinates tasks is an aspect of the organizing function. Recruiting employees, developing procedures, and establishing standards are activities related to other management functions. Diff: 2 Page Ref: 2 Chapter: 1 LO: 1 Skill: Concept

14) All of the following are activities performed within the staffing function of the management process EXCEPT ______. A) evaluating performance B) providing training C) recruiting employees D) maintaining morale Answer: D Explanation: D) Determining what type of people should be hired; recruiting prospective employees; selecting employees; setting performance standards; compensating employees; evaluating performance; counseling employees; and training and developing employees are aspects of the staffing function. Maintaining employee morale is an activity of the leading function. Diff: 2 Page Ref: 2 Chapter: 1 LO: 1 Skill: Concept

15) Which of the following terms best describes firms such as L.L. Bean, Toyota, and Dell? A) bargaining unit B) work council C) organization D) open shop Answer: C Explanation: C) An organization, such as L.L. Bean, Toyota, and Dell, consists of people with formally assigned roles who work together to achieve the organization's goals. Bargaining units, work councils, and open shops may work within an organization. Diff: 2 Page Ref: 3 Chapter: 1 LO: 1 Skill: Application

5 16) In the management process, which activity is part of the staffing function? A) developing rules B) maintaining morale C) evaluating performance D) setting production levels Answer: C Explanation: C) The staffing function involves evaluating the performance of employees. Developing rules is a planning function, and maintaining morale is a leading function. Setting standards such as production levels is an aspect of the controlling function of the management process. Diff: 2 Page Ref: 2 Chapter: 1 LO: 1 Skill: Concept

17) Which function of the management process involves setting standards such a sales quotas and production levels? A) planning B) organizing C) controlling D) leading Answer: C Explanation: C) Setting standards such as sales quotas, quality standards, or production levels is part of the controlling function of the management process. Planning, organizing, and leading are other functions in the management process. Diff: 1 Page Ref: 2 Chapter: 1 LO: 1 Skill: Concept

18) Which activity is part of the controlling function of the management process? A) recruiting prospective employees B) training and developing new employees C) developing departmental rules and procedures D) comparing employee performance with standards Answer: D Explanation: D) Recruiting and training are staffing functions, while developing rules is a planning function. Controlling involves setting standards and then checking to see how an employee's actual performance compares to those standards. Diff: 2 Page Ref: 2 Chapter: 1 LO: 1 Skill: Concept

6 19) ______is the process of acquiring, training, appraising, and compensating employees, and attending to their labor relations, health and safety, and fairness concerns. A) Human resource management B) Career planning C) Behavioral management D) Job evaluation Answer: A Explanation: A) Human resource management is the process of acquiring, training, appraising, and compensating employees, and of attending to their labor relations, health and safety, and fairness concerns. Career planning is the process of assessing personal skills and establishing a plan to achieve specific goals. Diff: 1 Page Ref: 2 Chapter: 1 LO: 1 Skill: Concept

20) Human resource management is best defined as the process of ______. A) controlling and orienting new employees B) organizing and scheduling work activities for teams C) outsourcing and offshoring clerical jobs to foreign countries D) acquiring, training, appraising, and compensating employees Answer: D Explanation: D) Human resource management is the process of acquiring, training, appraising, and compensating employees, and of attending to their labor relations, health and safety, and fairness concerns. Orienting new employees and outsourcing jobs may be required of HR managers at times, but hiring, training, and paying workers are the main tasks of HR management. Diff: 2 Page Ref: 2 Chapter: 1 LO: 1 Skill: Concept

21) ______is the right to make decisions, to direct the work of others, and to give orders. A) Leadership B) Authority C) Arbitration D) Bargaining Answer: B Explanation: B) Authority is the right to make decisions, to direct the work of others, and to give orders. Arbitration refers to settling a disagreement through a third party. Diff: 1 Page Ref: 3 Chapter: 1 LO: 1 Skill: Concept

7 22) All of the following are a line manager's responsibilities for effective HR management EXCEPT ______. A) advising upper management B) controlling labor costs C) developing employees D) orienting new employees Answer: A Explanation: A) Staff managers are authorized to assist and advise line managers. Line managers have line authority, which means they typically work to control labor costs, develop employees, and orient new workers. Diff: 3 Page Ref: 4 Chapter: 1 LO: 2 Skill: Concept

23) Which of the following best defines line authority? A) a manager's right to flexible decision-making powers B) a manager's right to advise other managers or employees C) a manager's right to advocate on behalf of his or her department D) a manager's right to issue orders to other managers or employees Answer: D Explanation: D) Line authority is a manager's right to issue orders to other managers or employees, which creates a superior-subordinate relationship. Staff authority refers to a manager's right to advise other managers or employees, which creates an advisory relationship. Diff: 2 Page Ref: 3 Chapter: 1 LO: 2 Skill: Concept

24) In most organizations, human resource managers are categorized as ______, who assist and advise ______in areas like recruiting, hiring, and compensation. A) staff managers; line managers B) line managers; middle managers C) line managers; staff managers D) functional managers; staff managers Answer: A Explanation: A) Human resource managers are usually staff managers. They assist and advise line managers in areas like recruiting, hiring, and compensation. However, line managers still have human resource duties. Diff: 3 Page Ref: 4 Chapter: 1 LO: 2 Skill: Concept

8 25) Which of the following has historically been an integral part of every line manager's duties? A) establishing dress codes B) developing annual budgets C) handling personnel issues D) creating personnel policies Answer: C Explanation: C) All line managers are heavily involved with personnel issues, such as hiring and training new employees. Not all line managers participate in dress codes, budgets, and policies, but they are always involved in issues relating to subordinates. Diff: 2 Page Ref: 4 Chapter: 1 LO: 2 Skill: Concept

26) Which of the following best explains why HR management is important to all managers? A) Economic challenges facing the world call for advanced cost-cutting and streamlining. B) Investing in human capital enables managers to achieve positive results for the firm. C) An enthusiastic labor force is likely to provide financial support to local unions. D) Technological changes and global competition require clear organization charts. Answer: B Explanation: B) Getting results is the bottom line of managing, and it is primarily accomplished through human capital. Managers throughout a firm need good people to get results, and hiring and retaining good people is the objective of HRM. Diff: 3 Page Ref: 3 Chapter: 1 LO: 2 Skill: Application

27) According to experts, the primary hindrance to a firm's productivity is its inability to ______. A) attain adequate cash and credit B) use advanced accounting controls C) acquire and maintain a good workforce D) create efficient manufacturing facilities Answer: C Explanation: C) Experts assert that it is the workforce and the company's inability to recruit and maintain a good workforce that constitutes a bottleneck for production. Projects backed by good ideas, vigor, and enthusiasm are less likely to be stopped by a shortage of cash than a shortage of human capital, which is the knowledge, education, training, skills, and expertise of a firm's workers. Diff: 3 Page Ref: 3 Chapter: 1 LO: 2 Skill: Application

9 28) Larry is a line manager at a large sporting goods store. Which of the following is LEAST likely to be one of Larry's HR responsibilities? A) appraising employee performance B) conducting job analyses C) sharing financial advice D) disciplining employees Answer: C Explanation: C) Line managers are typically involved with HR tasks such as assessing employees, determining the nature of each employee's job, and communicating with employees for interviewing and disciplinary purposes. Providing financial advice is not a responsibility of most line managers. Diff: 2 Page Ref: 4 Chapter: 1 LO: 2 Skill: Application

29) All of the following are examples of human resource specialties EXCEPT ______. A) job analyst B) training specialist C) EEO coordinator D) financial advisor Answer: D Explanation: D) Job analysis, training, and equal employment opportunity coordination are all duties of the HR department. HR specialists are less likely to serve as financial advisors. Diff: 2 Page Ref: 5 Chapter: 1 LO: 2 Skill: Concept

30) Nicole works as a job analyst at a computer firm. Which of the following most likely describes Nicole's duties in her current position? A) searching for qualified job candidates B) handling employee benefits programs C) collecting information about job duties D) planning and organizing training activities Answer: C Explanation: C) Job analysts collect and examine detailed information about job duties to prepare job descriptions. Recruiters interview job candidates, and compensation managers handle benefits programs. Diff: 2 Page Ref: 5 Chapter: 1 LO: 2 Skill: Application

10 31) In general, how many human resource employees would be on staff for a firm with 500 total employees? A) 1 B) 2 C) 5 D) 10 Answer: C Explanation: C) In most firms, there is one HR employee for every 100 company employees. Therefore, a firm with 500 company employees would require 5 HR employees to handle all of the firm's HR issues. Diff: 2 Page Ref: 5 Chapter: 1 LO: 2 Skill: Application

32) Which of the following human resource management specialties would most likely require extensive travel? A) labor relations specialist B) training specialist C) job analyst D) recruiter Answer: D Explanation: D) Recruiters are required to maintain contact within the community and perhaps travel extensively to search for qualified job applicants. Labor relations specialists, training specialists, and job analysts would require less travel. Diff: 2 Page Ref: 5 Chapter: 1 LO: 2 Skill: Concept

33) Which of the following focuses on using centralized call centers and outsourcing arrangements with vendors as a way to provide specialized support for certain HR activities? A) transactional HR groups B) corporate HR groups C) embedded HR units D) HR consulting firms Answer: A Explanation: A) Transactional HR groups focus on using centralized call centers and outsourcing arrangements with vendors, such as benefits advisors, to provide specialized support in day-to-day transactional HR activities to a firm's employees. Activities may include changing benefits plans and providing updated appraisal forms. Diff: 2 Page Ref: 6 Chapter: 1 LO: 2 Skill: Concept

11 34) An HR generalist at Wilson Manufacturing has been assigned to the sales department to provide HR management assistance as needed. Which of the following best describes the structure of the HR services provided at Wilson Manufacturing? A) transactional HR groups B) corporate HR groups C) embedded HR units D) HR centers of expertise Answer: C Explanation: C) In the embedded HR unit structure, an HR generalist is assigned directly to a department within an organization to provide localized human resource management assistance as needed. Transactional, corporate, and centers of expertise are three other typical organizational approaches to HR. Diff: 2 Page Ref: 6 Chapter: 1 LO: 2 Skill: Application

35) Roberta Whitman has recently been hired by Jackson Pharmaceuticals as the senior vice president of human resources. Jackson Pharmaceuticals has a history of problems within its HR department including high employee turnover, EEO violations, inadequate training programs, and benefit enrollment difficulties. With years of experience transforming HR departments in other firms, Whitman believes she can correct the problems at Jackson Pharmaceuticals.

Which of the following best supports the argument that Whitman should create embedded HR units and assign relationship managers to each department within the firm? A) Employees frequently complain about the inconsistent assistance they receive from the HR department due to its large size. B) The global nature of the firm makes it difficult for the HR department to effectively communicate corporate messages to employees scattered around the world. C) Centralized call centers would enable the HR department to provide specialized support on daily transactional activities. D) Line managers want to implement additional screening and evaluations to improve the quality of their subordinates. Answer: A Explanation: A) The embedded HR unit assigns HR generalists directly to departments like sales and production to provide the localized human resource management assistance the departments need. If employees are unable to receive the HR assistance they need on a regular basis, then it would be appropriate for the firm to assign HR generalists to each department as a direct line to the HR department. Diff: 3 Page Ref: 6 AACSB: Reflective Thinking Chapter: 1 LO: 2 Skill: Critical Thinking

12 36) Roberta Whitman has recently been hired by Jackson Pharmaceuticals as the senior vice president of human resources. Jackson Pharmaceuticals has a history of problems within its HR department including high employee turnover, EEO violations, inadequate training programs, and benefit enrollment difficulties. With years of experience transforming HR departments in other firms, Whitman believes she can correct the problems at Jackson Pharmaceuticals.

Which of the following best supports Whitman's idea to develop a transactional HR group to handle benefits administration? A) Extensive training has been provided to line managers so that they fully understand the different insurance options available to employees. B) Lower insurance premiums would eliminate the need for outsourcing medical services and improve employee health coverage. C) Outside vendors specializing in all aspects of benefits administration would provide improved support to the firm's employees. D) All employees are currently required to participate in health screening and drug tests to eliminate high risk employees from the benefits plan. Answer: C Explanation: C) The transactional HR group focuses on using centralized call centers and outsourcing arrangements with vendors to provide specialized support in day-to-day transactional HR activities to the company's employees. By outsourcing benefits administration, Jackson would allow HR managers to focus on other issues and enable benefits specialists to handle benefits enrollment and coverage issues. It is not the role of line managers to handle benefits administration. Diff: 3 Page Ref: 6 AACSB: Reflective Thinking Chapter: 1 LO: 2 Skill: Critical Thinking

37) ______refers to the tendency of firms to extend their sales, ownership, and/or manufacturing to new markets abroad. A) Market development B) Globalization C) Export growth D) Diversification Answer: B Explanation: B) Globalization is the tendency of firms to extend their sales, ownership, and/or manufacturing to new markets abroad. Firms usually expand globally to expand sales, cut labor costs, or form partnerships with foreign firms. Diff: 1 Page Ref: 6 Chapter: 1 LO: 3 Skill: Concept

13 38) Which term refers to exporting jobs to lower-cost locations abroad? A) compensating B) benchmarking C) offshoring D) warehousing Answer: C Explanation: C) The search for greater efficiencies is prompting employers to offshore (export) more jobs to lower-cost locations abroad. India is a common location for outsourced call centers, for example. Diff: 1 Page Ref: 7 Chapter: 1 LO: 5 Skill: Concept

39) Which of the following is NOT a trend facing human resource managers today? A) increasing age of the workforce B) increasing diversity in the workforce C) decreasing number of contingent workers D) decreasing number of college-educated workers Answer: C Explanation: C) The U.S. workforce is becoming older and more diverse, and the number of young, college-educated workers is falling. The number of contingent or temporary workers is on the rise as people freelance, work part-time, and work as independent contractors. Diff: 3 Page Ref: 8 Chapter: 1 LO: 3 Skill: Concept

40) Which of the following describes the most significant demographic trend facing the U.S. workforce? A) decreasing number of contingent workers B) increasing number of blue-collar workers C) decreasing number of bilingual workers D) increasing number of older workers Answer: D Explanation: D) One of the most significant demographic trends facing the U.S. workforce is the increasing number of aging workers, who are those over age 55. There are not enough younger workers to replace the projected number of baby-boom era older-worker retirees. As a result, many retirees are returning to the workforce. Diff: 3 Page Ref: 9 Chapter: 1 LO: 3 Skill: Concept

14 41) Which of the following statements best explains why employers are expecting a severe labor shortage in the next few years? A) More people are retiring than are entering the job market. B) One-third of single mothers are not in the labor force. C) People are living longer because of better health care. D) Increasing taxes have forced businesses to globalize. Answer: A Explanation: A) Many human resource professionals call "the aging workforce" the biggest demographic threat affecting employers. The basic problem is that there aren't enough younger workers to replace the projected number of baby-boom era older workers retiring. Diff: 3 Page Ref: 9 Chapter: 1 LO: 3 Skill: Concept

42) What are many employers doing to fill openings left by retiring employees? A) increasing the retirement age B) offering flexible work hours C) hiring more women D) rehiring retirees Answer: D Explanation: D) Many human resource professionals call "the aging workforce" the biggest demographic threat affecting employers. The basic problem is that there aren't enough younger workers to replace the projected number of baby boom-era older workers retiring. One survey found that 41% of surveyed employers are bringing retirees back into the workforce. Diff: 2 Page Ref: 9 Chapter: 1 LO: 3 Skill: Concept

43) According to employer surveys, one of the primary challenges of Generation Y employees is their ______. A) desire to work only in part-time positions B) inability to use information technology C) need for constant praise and recognition D) inability to balance work and family Answer: C Explanation: C) Generation Y has been described as "the most high-maintenance workforce in the history of the world," which is why the primary challenge of Generation Y employees is their constant need for feedback and recognition. However, Generation Y grew up using computers, so their greatest strength relates to their ability to use information technology. Diff: 3 Page Ref: 9 Chapter: 1 LO: 3 Skill: Concept

15 44) The Sarbanes-Oxley Act seeks to do all of the following EXCEPT ______. A) ensure employee privacy rights B) certify accurate financial reporting C) prohibit personal loans to executives D) require codes of ethics for public companies Answer: A Explanation: A) Congress passed the Sarbanes-Oxley Act in 2003. to curb erroneous corporate financial reporting. Sarbanes-Oxley requires CEOs and CFOs to certify their companies' periodic financial reports and prohibits personal loans to executive officers. In addition, every publicly listed company now needs a code of ethics, more often than not promulgated by human resources. Diff: 3 Page Ref: 14 AACSB: Ethical Reasoning Chapter: 1 LO: 4 Skill: Concept

45) What term refers to the knowledge, education, training, skills, and expertise of a firm's workers? A) tangible assets B) human capital C) human resources D) intellectual property Answer: B Explanation: B) Human capital is the knowledge, education, training, skills, and expertise of a firm's workers. In the modern workforce, employment is shifting from manual workers to knowledge workers. Diff: 1 Page Ref: 8 Chapter: 1 LO: 3 Skill: Concept

46) In today's business environment, what is a firm's main source of competitive advantage? A) technology B) human capital C) financial structure D) creative advertising Answer: B Explanation: B) In today's business environment, highly trained and committed employees, not machines, are often a firm's main competitive advantage. Technology, finances, and advertising are less important factors than having highly skilled workers. Diff: 2 Page Ref: 8 Chapter: 1 LO: 3 Skill: Concept

16 47) Most modern employers expect HR managers to do all of the following EXCEPT ______. A) create high-performance work systems B) participate in strategic planning activities C) take an integrated talent management approach D) utilize transactional relations to ensure corporate success Answer: D Explanation: D) As a result of trends such as globalization, increased competition, and economic recessions, HR managers are expected to handle a wider variety of tasks. Firms expect HR managers to develop high-performance work systems, help with strategic planning, and integrate talent management. Transactional services have always been an aspect of HR, but most firms expect these activities to be handled in new ways. Diff: 3 Page Ref: 7 Chapter: 1 LO: 3 Skill: Concept

48) Which of the following terms refers to workers who hold multiple jobs or are part-time employees? A) short-term B) seasonal C) temporary D) nontraditional Answer: D Explanation: D) There has been a shift to nontraditional workers, which includes those who hold multiple jobs, those who are "contingent" or part-time workers, or those who work in alternative work arrangements. Many others are freelancers or independent contractors hired for specific projects. Diff: 1 Page Ref: 9 Chapter: 1 LO: 3 Skill: Concept

49) Which of the following best describes a nontraditional worker? A) entrepreneurial workers B) workers with multiple jobs C) service industry workers D) workers near retirement age Answer: B Explanation: B) Nontraditional workers include those who hold multiple jobs, those who are "contingent" or part-time workers, or those who work in alternative work arrangements. Today, almost 10% of American workers fit this nontraditional workforce category. Of these, about 8 million are independent contractors who work on specific projects and move on once they complete the projects. Diff: 2 Page Ref: 9 Chapter: 1 LO: 3 Skill: Concept

17 50) Globalization, competition, and technology have led to which of the following trends in human resource management? A) HR managers assist top management with developing and implementing strategies. B) HR managers primarily focus on providing transactional services like recruiting and hiring. C) Metrics used to measure employee potential have been replaced by standardized testing. D) College recruiting has increased as a result of the growing number of retiring baby boomers. Answer: A Explanation: A) Globalization, competition, workforce trends, and economic upheaval have led HR managers to become more involved with top management in developing and implementing the firm's strategies or long-term plans. HR managers are focusing more on the big picture and less on transactional services, which are being increasingly outsourced. Diff: 3 Page Ref: 7 Chapter: 1 LO: 3 Skill: Concept

51) Tara Robles earned an MBA degree and is now an HR manager for a Fortune 500 company. In which of the following tasks does Tara's advanced degree benefit her the most? A) training interns to perform basic computer tasks B) recruiting college graduates for entry-level positions C) distributing pension payments to retiring employees D) assisting upper management in formulating business strategies Answer: D Explanation: D) Human resource managers in today's workforce still need skills in areas such as employee selection, training, and compensation, as HR managers in the past did. However, modern HR managers also require broader business knowledge and proficiencies, which can be gained through an MBA program. For example, to assist top management in formulating strategies, the human resource manager needs to be familiar with strategic planning, marketing, production, and finance. He or she must also be able to "speak the CFO's language," by explaining human resource activities in financially measurable terms, such as return on investment and cost per unit of service. Diff: 3 Page Ref: 14 Chapter: 1 LO: 4 Skill: Application

18 52) Which of the following most likely explains why top HR executives are being paid increasingly high salaries? A) A firm's vision is only effective when HR managers play a strategic role in its development. B) Human capital is linked to increased productivity and customer satisfaction. C) Transactional activities are more cost-effective when outsourced by HR. D) Business strategies developed by HR managers are quantifiable. Answer: B Explanation: B) Many employers today, such as L.L. Bean, know that a great staff makes them more competitive, and that the better they treat their staff, the better the staff treat customers. Human capitalthe employees' knowledge, skills, and experiencescan have a big effect on important organizational outcomes such as customer satisfaction, profitability, product development, and corporate growth. As a result, top HR executives are being increasingly well paid. Studies also show that top managers recognize the crucial role human resource managers can play in achieving a company's strategic goals. Diff: 3 Page Ref: 2, 14 Chapter: 1 LO: 4 Skill: Critical Thinking

53) Which of the following is LEAST likely to be used by HR managers to provide transactional services? A) developing embedded work teams B) outsourcing clerical tasks to vendors C) establishing centralized call centers D) offering self-administered benefits plans Answer: A Explanation: A) An increasing number of HR managers are helping develop long-term plans and strategies, so transactional tasks are being handled in new ways. Benefits enrollment and inquiries are frequently handled by outside vendors, centralized call centers, or by employees through intranet-based Web sites. Diff: 3 Page Ref: 12, 13 Chapter: 1 LO: 4 Skill: Concept

54) Which of the following terms refers to a set of HR management policies and practices that together produce superior employee performance? A) career management system B) in-house development system C) high-performance work system D) management assessment system Answer: C Explanation: C) A high-performance work system is a set of human resource management policies and practices that together produce superior employee performance. Firms with HPWSs typically pay more, use sophisticated recruitment practices, and use self-managing work teams. Diff: 2 Page Ref: 13 Chapter: 1 LO: 4 Skill: Concept 19 55) Jeremy, an HR specialist, works for a firm that has developed a high-performance work system. Which of the following practices is LEAST likely to be used at Jeremy's firm? A) employee training B) automatic pay increases C) workplace safety measures D) productivity measurements Answer: B Explanation: B) High-performance work systems are typically characterized by applicant screening to determine the best employees, extensive employee training, and plant safety programs. HPWSs are more likely to use evidence-based HR management, which involves the use of productivity measurements to make HR decisions. HPWSs are more likely to offer merit and incentive pay rather than automatic pay increases. Diff: 3 Page Ref: 13 Chapter: 1 LO: 4 Skill: Application

56) Evidence-based human resource management relies on all of the following types of evidence EXCEPT ______. A) analytics B) existing data C) research studies D) qualitative opinions Answer: D Explanation: D) Qualitative information or opinions are not characteristic of evidence-based HR management because neither can be measured. Evidence-based human resource management is based on the use of data, facts, analytics, scientific rigor, critical evaluation, and critically evaluated research/case studies to support human resource management proposals, decisions, practices, and conclusions. Diff: 2 Page Ref: 13 Chapter: 1 LO: 4 Skill: Concept

57) Which term refers to a set of quantitative performance measures that human resource managers use to assess their operations? A) ratios B) tools C) metrics D) case studies Answer: C Explanation: C) Metrics are quantitative performance measures used by HR managers to assess operations. Metrics are used in evidence-based human resource management to make decisions about HR management practices and policies. Diff: 1 Page Ref: 14 Chapter: 1 LO: 4 Skill: Concept

20 58) MAX Computers manufactures affordable laptops and desktops at its factory in Arizona. MAX has experienced a moderate amount of financial success, but upper management wants the firm to grow at a faster rate and become a bigger player in the highly competitive computer market. The firm's greatest problems relate to its employees. Employee turnover is highmost employees at MAX leave within 2 years or less of being hired. In addition, the rate of productivity among employees is not as high as executives would like. The vice president of human resources is considering moving MAX towards a high-performance work system.

Which of the following best supports the argument that MAX should move towards a high-performance work system? A) MAX will be able to reduce quality control issues by reassigning line and staff managers to new departments. B) Using tests and validated interviews during recruitment will enable MAX to screen job candidates effectively. C) Outsourcing clerical tasks will enable MAX to raise employee salaries, implement flexible schedules, and increase productivity. D) MAX's competitors regularly use benchmarking as a method for comparing their employees with those in other firms. Answer: B Explanation: B) A high-performance work system is a set of HR management policies and practices that jointly produce superior employee performance. HPWSs typically pay more, train employees more, use more advanced recruitment and hiring practices, and use self-managing work teams. MAX would improve employee productivity and reduce turnovers if it effectively recruited and tested applicants to make sure they were the right people for the job. Diff: 3 Page Ref: 12-13 AACSB: Reflective Thinking Chapter: 1 LO: 4 Skill: Critical Thinking

21 59) MAX Computers manufactures affordable laptops and desktops at its factory in Arizona. MAX has experienced a moderate amount of financial success, but upper management wants the firm to grow at a faster rate and become a bigger player in the highly competitive computer market. The firm's greatest problems relate to its employees. Employee turnover is highmost employees at MAX leave within two years or less of being hired. In addition, the rate of productivity among employees is not as high as executives would like. The vice president of human resources is considering moving MAX towards a high-performance work system.

Which of the following questions is most relevant to MAX's decision to move toward a high- performance work system? A) How would the implementation of self-managing work teams affect employee morale and work standards at MAX? B) How will qualitative performance measures address the needs of MAX employees in regard to the firm's benefits plan? C) What roles should line managers, staff managers, and HR managers at MAX play in performance appraisals? D) What case studies are available to compare the skills of MAX employees with workers in other industries? Answer: A Explanation: A) HPWSs typically pay more, train employees more, use more advanced recruitment and hiring practices, and use self-managing work teams. By answering the question about employee morale and work standards, it would become clear that MAX should move towards a HPWS and self-managing work teams. Benefits plans and performance appraisals are less relevant to a HPWS. Case studies are useful in evidence-based HRM but not necessarily to HPWSs. Diff: 3 Page Ref: 12-13 AACSB: Reflective Thinking Chapter: 1 LO: 4 Skill: Critical Thinking

60) An HR scorecard is primarily used to measure the relationship between HR activities and ______. A) employee career development B) benefits of outsourcing C) organizational structure D) employee behaviors Answer: D Explanation: D) Managers often use an HR scorecard process to measure the human resource function's effectiveness. The HR scorecard is a concise measurement system that shows the quantitative standards the firm uses to measure each HR activity, to measure the employee behaviors resulting from these activities, and to measure the strategically relevant organizational outcomes of those employee behaviors. Diff: 2 Page Ref: 14 Chapter: 1 LO: 4 Skill: Concept

22 61) Which term refers to the standards someone uses to decide what his or her conduct should be? A) morals B) ethics C) autonomy D) responsibility Answer: B Explanation: B) Ethics refers to the standards someone uses to decide what his or her conduct should be. Ethical decisions always involve moralitymatters of serious consequence to society's well-being, such as murder, lying, and stealing. Diff: 1 Page Ref: 14 AACSB: Ethical Reasoning Chapter: 1 LO: 4 Skill: Concept

62) All of the following are ethical issues that must be considered by human resource managers EXCEPT ______. A) workplace safety B) affirmative action C) FCC regulations D) privacy rights Answer: C Explanation: C) The regulations of the Federal Communications Commission are not likely to affect decisions made by HR managers. Ethical issues faced by HR managers include workplace safety, security of employee records, employee theft, affirmative action, comparable work, and employee privacy rights. Diff: 2 Page Ref: 14 AACSB: Ethical Reasoning Chapter: 1 LO: 4 Skill: Concept

63) Jennifer was recently certified as a professional human resource manager. Which organization most likely provided this certification to Jennifer? A) Society for Human Resource Management B) Academy of Human Resource Executives C) Association of Business Administration D) Association of Certified HR Managers Answer: A Explanation: A) The Society for Human Resource Management (SHRM) provides professional certification to HR managers. SHRM exams test the professional's knowledge of all aspects of human resource management, including ethics, management practices, staffing, development, compensation, labor relations, and health and safety. Diff: 2 Page Ref: 14 Chapter: 1 LO: 4 Skill: Application

23 64) James is preparing to take an SHRM certification exam. Which of the following subjects is LEAST important for James to study? A) strategic management B) workforce planning C) information technology D) occupational health and safety Answer: C Explanation: C) The Society for Human Resource Management (SHRM) provides professional certification exams that test the professional's knowledge of all aspects of human resource management, including ethics, management practices, staffing, development, compensation, labor relations, strategic management, workforce planning, and occupational health and safety. Information technology is less likely to be covered on the SHRM exam. Diff: 2 Page Ref: 14 Chapter: 1 LO: 4 Skill: Application

65) Unlike HR managers of the past, modern HR managers must be able to ______. A) hire workers who are well-matched to a firm's HR needs B) assist with employee training in departments within a firm C) develop and implement a firm's long-term business strategies D) explain HR activities in terms of a firm's finances and productivity Answer: D Explanation: D) In the past, HR managers mainly focused on employee training, compensation, and hiring. Now, HR managers need to be familiar with strategic planning, marketing, production, and finance. He or she must also be able to "speak the CFO's language," by explaining human resource activities in financially measurable terms, such as return on investment and cost per unit of service. Only top-level managers develop long-term business strategies for a firm, although HR managers may assist in the process. Diff: 3 Page Ref: 14 Chapter: 1 LO: 4 Skill: Concept

24 66) Planning, organizing, staffing, leading, and controlling are the five basic functions of the management process. Answer: TRUE Explanation: A manager is someone who is responsible for accomplishing the organization's goals, and who does so by managing the efforts of the organization's people. Most writers agree that managing involves performing five basic functions: planning, organizing, staffing, leading, and controlling. Diff: 1 Page Ref: 2 Chapter: 1 LO: 1 Skill: Concept

67) Personnel management involves recruiting prospective employees, setting performance standards, and monitoring production levels. Answer: FALSE Explanation: Personnel management involves recruiting, setting performance standards, and counseling. However, the controlling function of the management process requires managers to monitor production levels and set other types of standards. Diff: 2 Page Ref: 2 Chapter: 1 LO: 1 Skill: Concept

68) Setting standards such as sales quotas, quality standards, or production levels is part of the leading function of human resource management. Answer: FALSE Explanation: Setting standards such as sales quotas, quality standards, or production levels is part of the controlling rather than the leading function of human resource management. Leading involves maintaining morale and motivating workers. Diff: 2 Page Ref: 2 Chapter: 1 LO: 1 Skill: Concept

69) The planning function of management includes establishing goals and standards and developing forecasts. Answer: TRUE Explanation: The planning function of management includes establishing goals and standards, developing rules and procedures, and developing plans and forecasting. Planning, organizing, staffing, leading, and controlling are the five functions of the management process. Diff: 2 Page Ref: 2 Chapter: 1 LO: 1 Skill: Concept

25 70) Communicating is one of the five basic functions of the management process. Answer: FALSE Explanation: Planning, organizing, staffing, leading, and controlling are the five functions of the management process. Although communicating with employees is part of every step, it is not one of the five basic functions. Diff: 2 Page Ref: 2 Chapter: 1 LO: 1 Skill: Concept

71) Hiring the wrong person for the job, committing unfair labor practices, and failing to motivate employees are personnel mistakes that hinder firms from achieving positive results. Answer: TRUE Explanation: Common HRM mistakes include hiring the wrong people, failing to motivate workers, and committing unfair labor practices. The primary goal of HRM is to help the firm achieve its goals, and such HRM mistakes hinder that process. Diff: 2 Page Ref: 3 Chapter: 1 LO: 1 Skill: Concept

72) Autonomy refers to the right to make decisions, direct the work of others, and give orders. Answer: FALSE Explanation: Authority rather than autonomy is the right to make decisions, direct the work of others, and give orders. In management, authority is distinguished between line authority and staff authority. Diff: 1 Page Ref: 3 Chapter: 1 LO: 2 Skill: Concept

73) Staff managers are authorized to issue orders to subordinates and are directly in charge of accomplishing the organization's basic goals. Answer: FALSE Explanation: Line managers, not staff managers, are authorized to issue orders down the chain of command. Staff managers have the authority to advise other managers or employees. Diff: 1 Page Ref: 3 Chapter: 1 LO: 2 Skill: Concept

74) Human resource managers are generally staff managers. Answer: TRUE Explanation: Human resource managers are usually staff managers. They assist and advise line managers in areas like recruiting, hiring, and compensation. However, line managers still have human resource duties. Diff: 1 Page Ref: 4 Chapter: 1 LO: 2 Skill: Concept 26 75) Staff managers have staff authority which enables them to issue orders down the chain of command, unlike line managers. Answer: FALSE Explanation: Line managers can issue orders down the chain of command, while staff managers are only able to advise other managers and employees. Diff: 2 Page Ref: 3 Chapter: 1 LO: 2 Skill: Concept

76) In small organizations with less than 100 employees, line managers frequently handle all personnel duties without the assistance of a human resource staff. Answer: TRUE Explanation: In small firms, line managers are able to handle personnel duties. However, large firms of over 100 employees require human resource specialists. Diff: 1 Page Ref: 5 Chapter: 1 LO: 2 Skill: Concept

77) In most large firms, human resource managers assist line managers with hiring, training, evaluating, rewarding, counseling, promoting, and hiring employees. Answer: TRUE Explanation: Assisting and advising line managers is the heart of the human resource manager's job. HR assists in hiring, training, evaluating, rewarding, counseling, promoting, and firing employees. Diff: 1 Page Ref: 4 Chapter: 1 LO: 2 Skill: Concept

78) In the majority of firms, the task of interviewing job candidates is shared between HR and the hiring department, but training is typically the sole responsibility of staff managers. Answer: FALSE Explanation: HR and line managers share responsibility for most human resource activities. For example, in about two-thirds of the firms in one survey, human resource and line managers shared responsibility for skills training. Diff: 2 Page Ref: 4 Chapter: 1 LO: 2 Skill: Concept

27 79) The role of labor relations specialists includes investigating EEO grievances and collecting data about jobs for the purpose of writing job descriptions. Answer: FALSE Explanation: Labor relations specialists advise management on all aspects of union—management relations. EEO coordinators investigate EEO grievances, and job analysts collect data for job descriptions. Diff: 1 Page Ref: 5 Chapter: 1 LO: 2 Skill: Concept

80) Extensive travel is required of recruiters, compensation managers, and job analysts. Answer: FALSE Explanation: Recruiters will most likely have to travel to interview prospective candidates. Other HR positions such as compensation manager or job analysts are less likely to travel. Diff: 1 Page Ref: 5 Chapter: 1 LO: 2 Skill: Concept

81) Firms of all sizes are required to have at least one full-time human resource manager on staff. Answer: FALSE Explanation: Employers usually have about one HR professional per 100 employees. Small firms (say, those with less than 100 employees) generally do not have the critical mass required for a full-time human resource manager. Diff: 1 Page Ref: 5 Chapter: 1 LO: 2 Skill: Concept

82) Surveys indicate that small firms rely on creative recruiting practices to attract qualified candidates. Answer: FALSE Explanation: Small firms with less than 100 employees generally do not have the critical mass required for a full-time human resource manager. Their human resource management therefore tends to be "ad hoc and informal." For example, one survey concludes that small firms tend to use "unimaginative" recruiting practices like relying on newspaper ads, walk-ins, and word-of-mouth. Diff: 2 Page Ref: 5 Chapter: 1 LO: 2 Skill: Concept

28 83) Transactional HR groups focus on assisting top management in big picture issues such as developing a firm's long-term strategic plan. Answer: FALSE Explanation: Corporate HR groups focus on assisting top management in big picture issues such as developing a firm's long-term strategic plan. Transactional HR groups focus on providing specialized HR support on daily transactional HR activities like benefits administration. Diff: 2 Page Ref: 6 Chapter: 1 LO: 2 Skill: Concept

84) An embedded HR unit focuses on using centralized call centers and benefits advisors to provided specialized support. Answer: FALSE Explanation: The transactional HR group focuses on using centralized call centers and vendors (such as benefits advisors) to provide specialized support in day-to-day transactional HR activities to the company's employees. The embedded HR unit assigns HR generalists to departments to provide the assistance the departments need. Diff: 2 Page Ref: 6 Chapter: 1 LO: 2 Skill: Concept

85) IBM isolates HR functions into silos, which enables teams of HR specialists to focus on the needs of specific groups of employees. Answer: FALSE Explanation: According to IBM's senior vice president of human resources, the traditional HR organization improperly isolates HR functions into "silos" such as recruitment, training, and employee relations. He says this silo approach means there's no one team of HR specialists focusing on the needs of specific groups of employees. Diff: 2 Page Ref: 6 Chapter: 1 LO: 2 Skill: Concept

86) Between now and 2014, the majority of new jobs added in the United States will be in the services industries. Answer: TRUE Explanation: Today over two-thirds of the U.S. workforce is employed in producing and delivering services, not products. Between 2004 and 2014, almost all the 19 million new jobs added in the United States will be in services, not in goods-producing industries. Diff: 2 Page Ref: 8 Chapter: 1 LO: 3 Skill: Concept

29 87) According to the Bureau of Labor Statistics, between now and 2016 the number of workers classified as "white, non-Hispanic" will decrease and the number of workers classified as Asian will increase. Answer: TRUE Explanation: According to the Bureau of Labor Statistics, the number of workers classified as "white, non-Hispanic" will decrease between 1996 and 2016 while the workforce will see an increase in the number of Asian, Hispanic, and African-American workers. Diff: 2 Page Ref: 8 Chapter: 1 LO: 3 Skill: Concept

88) As baby boomers retire from the workforce, there will be more people entering the labor pool than leaving it. Answer: FALSE Explanation: According to the Bureau of Labor Statistics, the number of workers classified as "white, non-Hispanic" will decrease between 1996 and 2016 while the workforce will see an increase in the number of Asian, Hispanic, and African-American workers. Diff: 1 Page Ref: 8 Chapter: 1 LO: 3 Skill: Concept

89) The H-1B visa program allows U.S. employers to hire foreign workers to fill workforce shortfalls for hourly positions that require only limited skills. Answer: FALSE Explanation: With retirements triggering projected workforce shortfalls, many employers are hiring foreign workers for U.S. jobs. The H-1B visa program lets U.S. employers recruit skilled foreign professionals to work in the United States when they cannot find qualified U.S. workers. However, one study concluded that many workers brought in under the programs filled jobs that didn't actually demand highly specialized skills, many paying less than $15 an hour. Diff: 2 Page Ref: 9 Chapter: 1 LO: 3 Skill: Concept

90) In recent years, the number of HR administrative jobs has dropped, and employers are attempting to consolidate their HR management practices. Answer: TRUE Explanation: In part due to the recent recession, HR administrative jobs are down from 5% to 14%, depending on the industry. With HR staffing down, many employers are taking steps to simplify and consolidate their human resource management practices and costs. Diff: 2 Page Ref: 11 Chapter: 1 LO: 3 Skill: Concept

30 91) Modern human resource managers perform transactional duties as well as help top management develop and execute the firm's long-term plans. Answer: TRUE Explanation: Today's new human resource managers are involved in more "big picture" issues. They do not just do transactional things like signing on new employees. Employers want them to be the firms' internal consultants, identifying and institutionalizing changes that help employees better contribute to the company's success, and helping top management formulate and execute its long-term plans or strategies. Diff: 1 Page Ref: 11-12 Chapter: 1 LO: 4 Skill: Concept

92) Low-performance work systems are typically characterized by minimum wages, extensive employee training, and sophisticated recruitment and hiring practices. Answer: FALSE Explanation: A high-performance work system is a set of human resource management policies and practices that together produce superior employee performance. High-performance work systems are typically characterized by high wages, extensive employee training, and sophisticated recruitment and hiring practices. Diff: 2 Page Ref: 12 Chapter: 1 LO: 4 Skill: Concept

93) Studies indicate that high-performance firms provide more training to employees and keep operating costs down by paying lower salaries than competing firms. Answer: FALSE Explanation: A high-performance work system is a set of human resource management policies and practices that together produce superior employee performance. For example, in one study, the high performance plants paid more, trained more, used more sophisticated recruitment and hiring practices, and used more self-managing work teams. These plants also had the best overall performance in terms of higher profits, lower operating costs, and lower turnover. Diff: 2 Page Ref: 12 Chapter: 1 LO: 4 Skill: Concept

94) The evidence used in evidence-based human resource management typically comes from actual measurements, existing data, or critically evaluated research studies. Answer: TRUE Explanation: Evidence is the core of evidence-based human resource management. Data, facts, analytics, scientific rigor, critical evaluation, and critically evaluated research/case studies are used to support human resource management proposals, decisions, practices, and conclusions. Diff: 1 Page Ref: 13 Chapter: 1 LO: 4 Skill: Concept

31 95) HR scorecards are technological tools that are primarily used by HR managers to compare the skills and credentials of job candidates. Answer: FALSE Explanation: The HR scorecard is a concise measurement system, often presented in a desktop window showing the quantitative standards the firm uses to measure each HR activity, to measure the employee behaviors resulting from these activities, and to measure the strategically relevant organizational outcomes of those employee behaviors. Diff: 2 Page Ref: 14 Chapter: 1 LO: 4 Skill: Concept

96) The SHRM Human Resource Certification exams include testing on management practices, staffing, development, compensation, labor relations, and health and safety. Answer: TRUE Explanation: The Society for Human Resource Management offers HR professional certification exams. The exams test the professional's knowledge of all aspects of human resource management, including ethics, management practices, staffing, development, compensation, labor relations, and health and safety. Diff: 2 Page Ref: 14 Chapter: 1 LO: 4 Skill: Concept

97) The Sarbanes-Oxley Act is intended to curb erroneous corporate financial reporting. Answer: TRUE Explanation: Congress passed the Sarbanes-Oxley Act in 2003. To help ensure that managers take their ethics responsibilities seriously, Sarbanes-Oxley (SOX) aims to curb erroneous corporate financial reporting. Diff: 2 Page Ref: 14 Chapter: 1 LO: 4 Skill: Concept

98) Because of the Sarbanes-Oxley Act, HR managers must now review and approve a firm's financial statements. Answer: FALSE Explanation: Sarbanes-Oxley requires CEOs and CFOs rather than HR managers to certify their companies' periodic financial reports. SOX also prohibits personal loans to executive officers and directors, and requires CEOs and CFOs to reimburse their firms for bonuses and stock option profits if corporate financial statements subsequently require restating. Diff: 2 Page Ref: 14 Chapter: 1 LO: 4 Skill: Concept

32 99) Ethical issues such as workplace safety, security of employee records, comparable work, and employee privacy rights are all related to human resource management. Answer: TRUE Explanation: Ethics refers to the standards someone uses to decide what his or her conduct should be. Ethical issues related to HR management include workplace safety, security of employee records, employee theft, affirmative action, comparable work, and employee privacy rights. Diff: 2 Page Ref: 14 Chapter: 1 LO: 4 Skill: Concept

100) Since HR managers are expected to participate in long-term strategic planning, they no longer need to have recruiting and training skills. Answer: FALSE Explanation: Activities such as strategizing, measuring, and dealing with technology demand that HR managers exhibit new human resource management proficiencies. However, human resource managers still need skills in areas such as employee selection and training. Diff: 2 Page Ref: 14 Chapter: 1 LO: 4 Skill: Concept

101) Today's trend is for HR managers to spend more time on administrative, transactional services and less time on long-term strategic planning. Answer: FALSE Explanation: Modern HR managers must handle both strategic planning and transactional services. Technology has changed how HR departments manage transaction services, such as benefits administration. Intranet-based Web sites enable employees to self-administer benefits plans for example. Diff: 2 Page Ref: 14 Chapter: 1 LO: 4 Skill: Concept

102) The Sarbanes-Oxley Act totally defines the realm of ethics with which the HR manager has to cope. Answer: FALSE Explanation: The Sarbanes-Oxley Act helps ensure that managers take their ethics responsibilities seriously, and it aims to curb erroneous corporate financial reporting. However, the human resource manager's responsibilities for ethics do not end with Sarbanes-Oxley. One survey found that six of the ten most serious ethical issues—workplace safety, security of employee records, employee theft, affirmative action, "comparable work", and employee privacy rights—were human resource management related. Diff: 2 Page Ref: 14 AACSB: Ethical Reasoning Chapter: 1 LO: 4 Skill: Concept

33 103) Human resource managers who complete professional certification exams can earn SPHR, GPHR, or PHR certificates. Answer: TRUE Explanation: SHRM exams test the professional's knowledge of all aspects of human resource management, including ethics, management practices, staffing, development, compensation, labor relations, and health and safety. Those who successfully complete all requirements earn the SPHR (Senior Professional in HR), GPHR (Global Professional in HR), or PHR (Professional in HR) certificate. Diff: 1 Page Ref: 14 Chapter: 1 LO: 4 Skill: Concept

104) Human resource management is the sole responsibility of human resource managers, so line managers and staff managers rely heavily on HR specialists to hire the best employees. Answer: FALSE Explanation: Human resource management is the responsibility of every manager–not just those in human resources. Throughout every page in the textbook, you'll therefore find an emphasis on practical material that you as a manager will need to perform your day-to-day management responsibilities. Diff: 2 Page Ref: 4 Chapter: 1 LO: 2 Skill: Concept

105) Economic challenges faced on a national and a global level in recent years have affected human resource management at most firms. Answer: FALSE Explanation: The economic challenges the United States and the world faced starting around 2008 prompted most employers to re-think the costs and benefits of how they delivered their human resource services. Diff: 2 Page Ref: 10 Chapter: 1 LO: 3 Skill: Concept

34 106) What are the five basic functions of management? Explain some of the specific activities involved in each function. Is one function more important for human resource management? Answer: The five basic functions are planning, organizing, staffing, leading, and controlling. Planning activities include establishing goals and standards, developing rules and procedures, and developing plans and forecasting. Organizing activities include giving specific task assignments to subordinates, establishing departments, delegating authority to subordinates, and establishing channels of authority and communication. Staffing activities include determining what type of people should be hired, recruiting prospective employees, and setting performance standards. Leading activities include maintaining morale and motivating subordinates. Controlling activities include setting standards such as sales quotas and quality standards, and taking corrective action as needed. Staffing is the function most readily related to human resource management. However, HR managers actually perform all five functions. Diff: 3 Page Ref: 2 AACSB: Analytical Skills Chapter: 1 LO: 1 Skill: Application

107) Explain the difference between line authority and staff authority. What type of authority do human resource managers have? Answer: Authority is the right to make decisions, to direct the work of others, and to give orders. Line managers are authorized to direct the work of subordinates and are directly in charge of accomplishing the organization's basic goals. Staff managers are authorized to assist and advise line managers in accomplishing these basic goals. Human resource managers are usually staff managers because they are responsible for assisting and advising line managers in areas like recruiting, hiring, and compensation. However, human resource managers do have line authority within their own department. Diff: 2 Page Ref: 3-4 Chapter: 1 LO: 2 Skill: Application

108) How have technological advances changed the HR environment? What technological tools enable HR managers to perform their duties more efficiently? Answer: Technology is changing how businesses operate as well as the nature of work. In plants throughout the world, knowledge-intensive high-tech manufacturing jobs are replacing traditional factory jobs, which means that employees need new skills and training to excel at increasingly complex jobs. Intranet-based Web sites enable employees to self-administer benefits plans, which allows HR managers to focus on other tasks. HR scorecards presented in desktop windows help managers see the relationships between employee behaviors and HR activities, such as training. Internet-based communications enable firms to offshore call center jobs to India, which has had a significant effect on HR management. Diff: 3 Page Ref: 8, 13-14 AACSB: Use of IT Chapter: 1 LO: 3, 4 Skill: Synthesis

35 109) What is human resource management? Why is human resource management important to all managers? What is the role of line managers in human resource management? Answer: Human resource management is the process of acquiring, training, appraising, and compensating employees, and of attending to their labor relations, health and safety, and fairness concerns. HR management is important to all managers because managers can do everything else rightlay brilliant plans, draw clear organization charts, set up world-class assembly lines, and use sophisticated accounting controlsbut still fail, by hiring the wrong people or by not motivating subordinates. On the other hand, many managerspresidents, generals, governors, supervisorshave been successful even with inadequate plans, organizations, or controls because they had the knack of hiring the right people for the right jobs and motivating, appraising, and developing them. The direct handling of people is an integral part of every line manager's duties. More specifically, line managers must place the right person in the right job, orient and train new employees, improve the job performance of each person, gain cooperation and develop smooth working relationships, interpret the company's policies and procedures, control labor costs, and protect employees' health and physical condition. Diff: 3 Page Ref: 2-4 Chapter: 1 LO: 1, 2 Skill: Synthesis

110) What duties are required of most HR managers? How have the duties of HR managers changed from 30 years ago? Answer: Most HR managers conduct job analyses, recruit job candidates, train employees, compensate employees, and communicate with employees and other managers. Modern managers are expected to be involved in strategic issues rather than only in transactional duties as in the past. Diff: 3 Page Ref: 2, 11 Chapter: 1 LO: 1, 4 Skill: Synthesis

111) What proficiencies are necessary for HR managers to succeed in today's business environment? Answer: Strategizing, internal consulting, and dealing with outside vendors and technology call for new human resource management proficiencies. Of course, human resource managers still need skills in areas such as employee selection, training, and compensation. But in addition, they require broader business knowledge and proficiencies. Diff: 3 Page Ref: 14 Chapter: 1 LO: 4 Skill: Application

112) List and explain five personnel mistakes you do not want to make as an HR manager. Answer: The answer should include any of the following: to have your employee not performing at peak, to hire the wrong person, to experience high turnover, to have employees not doing their best, to have the company taken to court because of discriminatory actions, to have your company cited for safety violations, to have undertrained employees, and to commit unfair labor practices. Diff: 2 Page Ref: 3 Chapter: 1 LO: 2 Skill: Application 36 113) Why are demographic trends important to HR managers? Answer: HR managers need to be cognizant of demographic trends because changes in the availability of workers directly affect recruiting and selection efforts. The changes in the workforce can impact the availability of technologically savvy employees or the availability of skilled labor. Additionally, the availability of employees affects the compensation that needs to be offered to attract and retain valued employees. Diff: 3 Page Ref: 8 AACSB: Reflective Thinking Chapter: 1 LO: 3 Skill: Application

114) In a brief essay, compare the role of human resource management in small businesses and in high- performance work systems. Answer: Small firms generally do not have the critical mass required for a full-time human resource manager. Their human resource management therefore tends to be informal. Small firms typically do little or no formal training and recruit employees with newspaper ads and through word-of-mouth. In contrast, a high-performance work system is a set of human resource management policies and practices that together produce superior employee performance. HPWSs typically pay well, train employees regularly, use sophisticated recruitment and hiring practices, and use self-managing work teams. Diff: 3 Page Ref: 5, 12-13 Chapter: 1 LO: 2, 4 Skill: Synthesis

115) What changes in the business environment have led to HR managers playing more strategic roles in organizations? As a result of these changes, what skills are now required of modern HR managers? Answer: Changes in the environment of HR management are requiring HR to play a more strategic role in organizations. These changes include growing workforce diversity, rapid technological change, globalization, and changes in the nature of work, such as the movement toward a service society and a growing emphasis on education and human capital. Human resource managers still need skills in areas such as employee selection and training. But now they also require broader business knowledge and competencies. For example, to assist top management in formulating strategies, the human resource manager needs to understand strategic planning, marketing, production, and finance. Diff: 3 Page Ref: 6-10, 14 Chapter: 1 LO: 3, 4 Skill: Synthesis